BILL ANALYSIS                                                                                                                                                                                                    






                 SENATE JUDICIARY COMMITTEE
                  Adam B. Schiff, Chairman
                 1999-2000 Regular Session


SB 600                                                 S
Senator Costa                                          B
As Amended April 5, 1999
Hearing Date: May 18, 1999                             6
Government Code                                        0
DLM:jt                                                 0
                                                       

                           SUBJECT
                               
                    Trial Court Funding

                         DESCRIPTION  

This bill would make two non-substantive changes to the  
trial court funding of court operations.  Specifically,  
this bill would: 

 Clarify the intention of the Legislature to provide for  
  continuing responsibility for funding court operations.  

 Correct a mistake in the existing provision allowing  
  trial courts to continue to receive specific services  
  from cities and counties through contract, by changing a  
  cross-reference from the section which allows (and  
  provides a mechanism for how) a court may cancel the  
  services, to the section which allows the county to  
  cancel services.

                          BACKGROUND  

The Legislature has expressed its intentions to take over  
responsibility for trial court funding from the counties.  
AB 233, (Escutia) Ch. 850, Stats. of 1997 enacted the Trial  
Court Funding and Improvement Act of 1997 which provides  
for the state to assume responsibility for funding trial  
court operations.  Most recently AB 1590 (Assembly Budget  
Committee), Ch. 406, Stats. of 1998 increased state support  
for trial courts and made technical adjustments to county  
support levels. 
                                                       
(more)



SB 600 (Costa)
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                   CHANGES TO EXISTING LAW
  
1.    Existing law  declares that commencing on July 1, 1997,  
no county shall be
  responsible for funding court operations?.

  This bill would provide commencing on July 1, 1997, and  
  each year thereafter, no county shall be responsible for  
  funding court operations?

2.    Existing law  states at Government Code  77212 (d) (1)  
  that if a trial court desires to receive or continue to  
  receive a specific service from a county or city and  
  county as provided in subdivision (c), and the county or  
  city and county desires to provide or continue to provide  
  that service as provided in subdivision (c), the  
  presiding judge of that court and the county or city and  
  county shall enter into a contract for that service.  

   This bill  would provide that if a trial court desires to  
  receive or continue to receive a specific service from a  
  county or city and county as provided in subdivision (c),  
  and the county or city and county desires to provide or  
  continue to provide that service as provided in  
  subdivision (b), the presiding judge of that court and  
  the county or city and county shall enter into a contract  
  for that service.

                           COMMENT
  
1.   Stated need for bill  

  According to the author, "This is a continuation of the  
  Legislature's commitment to provide funding for trial  
  courts.  These changes are necessary to clarify the roles  
  that the state and counties play in this complex issue." 
      The California State Association of Counties are the  
  sponsors of this measure.  They state that the bill will,  
  "provide necessary clean-up to provisions of the  
  comprehensive trial court funding legislation of last  
  session." 

2.    Trial court funding costs to the state  

                                                             




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      While this bill arguably does not create any new  
  obligations for the state in the area of trial court  
  funding, it does reaffirm our continuing obligations.  In  
  this light, it might be appropriate to re-evaluate the  
  premise upon which the state accepted responsibility-that  
  the state's assumption of responsibility for funding from  
  the counties would be a revenue neutral switch; the state  
  would get the court fees then paid to the counties, and  
  would assume the costs of funding the courts.  To make  
  the switch revenue neutral, the implementing legislation  
  raised certain court fees.  However, the switch has not  
  been revenue neutral.  Each year the Judicial Council has  
  requested "deficiency funding" to supplant the court's  
  budget.  For instance in fiscal year 1998-99 the state  
  paid $51.2 million dollars for court funding shortfalls.   
  In fiscal year 1999-2000, the court is requesting $41  
  million dollars, in addition to the state's other  
  accepted responsibilities for funding trial court  
  operations and staffing.  While the Legislature may agree  
  that such requests are legitimate and necessary, the  
  Legislature should know that trial court funding is not a  
  revenue neutral proposition, and may wish to ask what the  
  true continuing costs of trial court funding will be.


3.     Contracting for specific services  

  The Government Code allows for counties and cities to  
  continue providing their services to the courts when both  
  parties agree, through contact.  Section 77212 (d) (1)  
  states that if a trial court desires to receive or  
  continue to receive a specific service from a county or  
  city and county as provided in subdivision (c), and the  
  county or city and county desires to provide or continue  
  to provide that service as provided in subdivision (c),  
  the presiding judge of that court and the county or city  
  and county shall enter into a contract for that service.

  If the county wishes to exit a contractual agreement for  
  services, 77212 subsection (b) provides that the county  
  may give notice to the court that the county will no  
  longer provide a specific service except that the county  
  shall cooperate with the court to ensure that a vital  
  service for the court shall be available from the county  
  or other entities that provide such services.  The notice  
                                                             




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  must be given at least 90 days prior to the end of the  
  fiscal year and shall be effective only upon the first  
  day of the succeeding fiscal year.

  If the court wishes to exit a contractual agreement for  
  services, 77212 subsection (c) provides that the court  
  may give notice to the county that the court will no  
  longer use a specific county service.  The notice shall  
  be given at least 90 days prior to the end of the fiscal  
  year and shall be effective only upon the first day of  
  the succeeding fiscal year. However, for three years from  
  the effective date of this section, a court shall not  
  terminate a service that involved the acquisition of  
  equipment, including, but not limited to, computer and  
  data-processing systems, financed by a long-term  
  financing plan whereby the county is dependent upon the  
  court's continued financial support for a portion of the  
  cost of the acquisition.

  This bill would change the cross-reference contained in  
  subsection (d) (1).  This will allow agreements to go  
  forward when the court has requested that the county or  
  city continue to provide a service, and the county or  
  city does not wish to terminate the relationship as  
  allowed under subsection (b).

  The existing cross-reference would allow the court to  
  terminate the relationship as allowed under subsection  
  (c) when it is the party requesting that the county or  
  city continue to provide a service, effectively locking  
  the cities and counties into the agreements with no way  
  out. 


4.   Prior related legislation  

  AB 1590 (Assembly Budget Committee) provides county trial  
  court funding relief by increasing state support for  
  trial courts and making technical adjustments to county  
  support levels and increases county grant levels for the  
  Court Appointed Special Advocate (CASA) program.   
  Specifically, AB 1590 will:

   a)  Delay technical adjustments of county remittance  
     levels to the state for maintenance of efforts (MOE)  
                                                             




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     for trial courts from 1997-98 to 1998-99.

   b)  Provide recoupment for counties over a five-year  
     period beginning in 1999-00 of funds lost due to the  
     delay of the MOE adjustment from 1997-98 to 1998-99.   
     Full recoupment may occur in 1999-00 if the Department  
     of Finance (DOF) determines it feasible or counties  
     demonstrate an extreme financial hardship through an  
     appeals process with DOF.

   c)   Reduce the fine and forfeiture amounts required to  
     be remitted by six counties due to their base year  
     remittance levels reflecting 13 rather than 12 months.  
      

   d)  Reduce county remittance levels to the state for MOE  
     of trial  courts beginning in 1999-00 by increasing  
     the number of  "bought-out" counties from 20 to 37  
     (all counties with populations below 300,000), and  
     lowers the MOE rate for the remaining counties' MOE  
     remittance levels by 10 percent.

   e)  Raise the county grant levels for the CASA program  
     from $20,000 to $35,000 for counties with populations  
     under 700,000, and to $50,000 for counties with  
     populations above 700,000, for the purpose of  
     maintaining the program that recruits and trains  
     volunteers who assist children who are subjects in  
     judicial proceedings.

  AB 233 (Escutia) transfers principal funding  
  responsibility for trial court operations to the state  
  beginning in the 1997-98 fiscal year (FY) while freezing  
  county contributions at the FY 1994-95 levels.    
  Specifically, that bill will:

   a)  Raise certain civil court fees;

   b)  Create task forces regarding court facilities and  
     the status of court employees;

   c)  Require the Judicial Council (JC) to adopt rules  
     which establish decentralized trial court management;

   d)  Provide for a civil delay reduction team; equalizes  
                                                             




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     county contributions to trial court funding beginning  
     the 1998-99 fiscal year to ensure the state pays at  
     least 58 percent of each county's trial court  
     operations;
    
   e)  Redirect 100 percent of all traffic citations  
     written within municipal jurisdictions to cities,  
     effective July 1, 1998;

   f)  Establish a trial court modernization and efficiency  
     program for unified courts subject to appropriation by  
     the Legislature;

   g)  Provide, beginning the 1998-99 fiscal year, over $10  
     million to "buy out" the trial court costs of the  
     state's least populous 20 counties, and an additional  
     $4.3 million to five "donor"  counties;

   h)  Provide the state will pay for additional growth in  
     court costs in future fiscal years.

Support:  None Known

Opposition:  None Known

                           HISTORY
  
Source:  California State Association of Counties

Related Pending Legislation:  None Known

Prior Legislation:  AB 233 (Escutia) Ch. 840, Stats. of  
1997
                   AB 1590 (Assembly Budget Committee) Ch.  
     406, Stats. of 1998

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